What happens when tariffs turn strategic partners into rivals? That’s the question as President Trump’s latest 50% tariffs on Indian goods take effect, marking one of the most severe trade escalations yet. The move, aimed at punishing India for buying Russian oil, doesn’t just sting New Delhi’s exporters—it also threatens deep rifts in geopolitical alliances and global supply chains.
The immediate fallout:
- About 55% of India’s exports to the US (worth $87 billion) are now hit by elevated duties
- Key sectors like textiles, gems, and seafood face shrinking US orders and halted production
- Indian GDP growth could dive below 6% if duties persist, according to Goldman Sachs
The US, once seen as India’s economic anchor, may now be pushing it closer to China and Russia—a strategic own goal, experts caution. Meanwhile, Germany’s prized auto sector is reeling from new US tariffs, with car exports to America down 8.6% in H1 2025 and 51,500 auto jobs lost in the past year. Around the globe, rising tariffs are looking less like temporary tactics and more like a new normal for trade.
